City of Portland Tax Extension Reminder

We are at the 11th hour for filing tax returns today – hopefully you have filed already or have sent in an extension.

Just a quick, last-minute reminder for those of you who have not yet filed the 2008 return for your corporation, LLC, partnership, or sole proprietorship business and do business in the City of Portland and/or Multnomah County – remember to extend your City of Portland return.

Unfortunately, many forget this return and end up with some sizable penalties when they finally file.  However, the City has made the process much easier than prior years as payment is no longer required, so you have no excuse this year.

File Online – quick and painless, credit card payment option

Download the Fillable Pdf – for those of you who want to wait at the post office.

Happy Tax Day!

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About Brian Germer, CPA

CPA with Parsons and Germer CPAs, LLP in Portland, OR

3 thoughts on “City of Portland Tax Extension Reminder

  1. Brian,

    I run a SMLLC and will be relocating to Portland later this year. I am trying to do some research into the tax filing requirements for SMLLCs in Oregon. It seems as though the state treats them as disregarded entities like the IRS, so I will just have to file my Federal 1040 and Oregon personal returns as normal, with no separate business returns required.

    Then I stumbled upon this Portland city business tax. Will I have to pay that ~2% of income to the city as an extra tax, or is that disregarded as well? If it is, do I have to file anything with the city? Must I still register with them, even if I don’t owe any tax? Any help is greatly appreciated. The differences between states are enormous! Thanks in advance!

    • A SMLLC is disregarded according to the IRS and can be filed on the 1040; however, in Oregon you will still need to register the LLC with the Secretary of State (http://www.filinginoregon.com/) as it is still legally an LLC.

      There are several taxes you could be subject to in Oregon as an SMLLC:

      1) Tri-Met – if you have self-employment income, you are going to be subject to this tax. It is fairly small (.6918%), but you do have to consider it in the overall cost of doing business. Most of the tri-county area is subject.

      2) City of Portland / Multnomah County Tax – if you do business within the City or County boundaries, and your total gross income is over $50k, you will be subject to the MCBIT/PBL tax. For professionals and service providers located within the City, this can be a significant tax. This is why Kruse Way and other commercial area just outside the City/County boundaries are so popular.

      The only upside to the SMLLC in Oregon is you do not have to pay the $150 excise tax each year that the multi-member LLCs have to pay. Plus, it is an amazing place to live, so it is all worth it.

      Hope that helps!

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